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The Pacific Ocean can now be crossed in a new way. Southern Cross Cables has officially launched its long awaited NEXT cable system with 400GbE services on tap. … [visit site to read more]
Lebanon has been going through a major financial crisis since 2019, the effects of which have only been exacerbated by the coronavirus pandemic. The value of the Lebanese pound has collapsed by around 90%, bankrupting the government and crippling the country’s electric grid, which is largely reliant on importing fuel and energy from neighbouring countries.
Naturally, this economic catastrophe has had enormous effects for the country’s telecoms industry, which have rapidly transformed from government-backed cash cows to skeleton operations struggling to keep their networks operational…
Lebanon has been going through a major financial crisis since 2019, the effects of which have only been exacerbated by the coronavirus pandemic. The value of the Lebanese pound has collapsed by around 90%, bankrupting the government and crippling the country’s electric grid, which is largely reliant on importing fuel and energy from neighbouring countries.
Naturally, this economic catastrophe has had enormous effects for the country’s telecoms industry, which have rapidly transformed from government-backed cash cows to skeleton operations struggling to keep their networks operational.
Back in October last year, with the country was rapidly running out of fuel, the Parliamentary Media and Communications Committee warned that the country’s telecoms networks were on the brink of complete failure due to a lack of power.
By January 2022, the situation was still dire, with the telcos “living day by day”, reporting that that they were having their expensive network equipment looted regularly and were unable to import replacements.
Fuel remained a major problem, despite the government signing various deals with Syria and Jordan to help address the shortage. Having once accounted for roughly 9% of operating costs for the telcos in 2018, securing fuel now constitutes roughly 60%.
Of course, in the last few years the telcos themselves have taken drastic cost cutting measures to try and provide some financial stability. Among other things, they have completely eliminated their marketing services, stopped providing additional added value services with third-party suppliers, negotiated lower rent at their physical locations, and frozen employee acquisition. In fact, roughly 20% of all employees at both mobile operators, Alfa and Touch, have already resigned.
All told, these cuts have served to reduce operating costs by around half in most cases; Touch, for example, reported that its operating costs had shrunk from $530 million to $254 million, with further cuts still to come.
But despite these drastic measures, the future of these operators was still jeopardy. With the crisis pulling at consumers’ purse strings, Average Revenue Per User (ARPU) for the mobile sector has plummeted to an all-time low, currently around just $1.2, compared to $26.2 prior to the crisis.
Combined with shrinking value of the Lebanese pound, and Touch made the equivalent of just $45.5 million in 2021, compared to roughly $850 million in 2018.
Relief for the sector finally arrived on May 20, with the government approving the operators’ request to hike up prices for consumers.
Tariffs had previously been pegged to the old exchange rate of 1,500 Lebanese pounds to the dollar, but the new rules would allow a switch to the flexible exchange rate of the Lebanese central bank’s Sayrafa platform. All subscriptions are to be paid in dollars, with customers told to calculate their new rate by dividing their existing package by three and multiplying it by the Sayrafa rate (now around 29,000 pounds to the dollar).
In effect, most mobile customers will be billed around five-times what they were previously paying for mobile data, while fixed line customers can expect a 2.5-fold increase in costs from state-run broadband provider, Ogero.
These price hikes went into effect last Friday, 1 July, with customers and digital rights organisations already launching complaints, saying that many people will simply be priced out of mobile services.
“Lebanon will become a place where no one will be able to use telecoms except those who are privileged,” explained Mohammed Najem, co-founder of Beirut-based digital rights organisation SMEX to The National. “The prices have increased at least five times what they were. A lot of people can’t afford these prices, which means many people will either use much less internet or they will go totally offline.”
Until some lasting solutions can be devised for Lebanon’s economic crisis, it seems the country’s telecom sector will continue to just barely cling to life, at least for the short term.
Also in the news:
In a reminder of the changing business models of many operators in Africa, it has been reported that the M-Pesa virtual Visa card, introduced in June, is now undercutting Kenya’s commercial banks in the foreign exchange market.
The virtual card, available to all M-Pesa users in Kenya – there are more than 30 million – is charging a lower forex rate than banks for payments across Visa’s 61 million merchants.
Kenya’s Business Daily suggests that the lower forex rate aims to win M-Pesa a larger share of the country’s cross-border payments market.
As we reported at the time, the M-Pesa Global Pay Visa Virtual card will allow users to securely pay 100 million foreign merchants from their mobile phones without credit cards or accounts with payment processors. The virtual card also targets subscription markets for services like Netflix and Spotify. It is to be expanded beyond Kenya, to Tanzania, Mozambique, Congo, Lesotho and Ghana, over the next year.
At just over 38%, M-Pesa has already overtaken voice (about 31%) to become the biggest revenue earner for operator Safaricom, boosted by a cashless trend encouraged by the Covid-19 pandemic and by continuing service diversification.
For example Lipa na M-Pesa, a cashless payment service that allows customers to make payments for goods and services securely and conveniently, has aggressively recruited merchants across the country, including businesses such as fuel stations, supermarkets, corner shops and eateries that card payment services may have avoided, preferring to target formal retailers.
And more growth is planned as Safaricom aims to roll out new M-Pesa services in areas such as investments and insurance – if the Kenyan regulator approves.
Four bits of vendor news worth keeping up with from around the industry and the world: … [visit site to read more]
If you work in sales, you should be one of the best storytellers. Why? Well, the obvious reason is that stories are fun! But mainly because storytelling allows salespeople to get creative with their sales pitch.
Think about the different sales pitches you have heard in your life. Would you prefer bland stats and industry standards? Or would you like to hear personality and something relatable?
Storytelling adds emotion to your pitch and delivers visual and relatable outcomes that look attainable to potential customers. By reading these four tips, learn how to enhance your next pitch with storytelling.
What is it you want your listeners to gain? How do you want them to feel? Why should they even listen to you?
Answer these questions and establish the main takeaway of why you are connecting with someone. Have your goal in mind, and do not stray from the topic. Defining the main takeaway will make it easier to structure your story.
Now that you have your main takeaway, it is time to structure your story. All good stories have a beginning, middle, and end. Of course, it goes much deeper than that, but the middle of the story is where readers reach the climax. Also known as the rising action, the climax is the highest point of the emotion where the person(s) in the story reaches a conflict or hurdle. After the climax, we address the issue at hand with the resolution. The struggle is over, the problem is solved, and we can coast to the conclusion.
You can deliver one of the best storytelling experiences by implementing a proper structure. Everyone loves a feel-good story, but you must overcome an issue to receive a happy ending.
A good tip for resellers is to use a case study from one of their existing customers. Showcase the problem the customer was facing (the climax) and how your solutions solved the problem! (the resolution).
If you can add a personalized touch to your story, leads will eat it up! Even though you are contacting decision-makers in the same industry, they do not all think alike. In fact, people are so different from one another that one sales pitch may work extremely well on some and others not so much.
Do your due diligence and learn key facts about the person, so your pitch is highly personalized. Use the person’s name, examples, and experiences to tailor the story. Mention your connection with past customers who remind you of them. Although they seem small, the little personal touches will make a huge difference.
The last point, but probably the most important, is to keep your story simple. You want to ensure your lead clearly understands your takeaway and that they will remember it. Therefore, avoid using technical jargon, swaying from the main point, and adding unnecessary details to the story.
By keeping it simple, you’ll keep your listeners engaged with the message and allow them time to ask any follow-up questions.
After considering these tips, take a look at this example of a great story. A long-time partner of Bicom Systems, SOCS (Southern Ohio Communication Services), saves the day for one of their customers, a local police station.
Explore the issue and learn how SOCS swiftly solves a problem using their solutions. Oh, and the fact they did this in only FOUR hours!
Share this blog post on social media and let us know your favorite sales pitch that is told like a story. Visit our website for more information on Bicom Systems and how you can become a partner.
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Today, MTS has become the latest mobile operator to join New Digital Solutions, taking a 25% stake in the business alongside its mobile rivals Rostelecom, MegaFon, and Vimpelcom.
The move means that all four of Russia’s largest mobile operators are now equal partners in the JV, which aims to explore the viability and availability of various spectrum bands for 5G services.
The history of New Digital Solutions begins back in 2017, when MegaFon and Rostelecom first set up a working group to explore the future of 5G technology in the 3…
Today, MTS has become the latest mobile operator to join New Digital Solutions, taking a 25% stake in the business alongside its mobile rivals Rostelecom, MegaFon, and Vimpelcom.
The move means that all four of Russia’s largest mobile operators are now equal partners in the JV, which aims to explore the viability and availability of various spectrum bands for 5G services.
The history of New Digital Solutions begins back in 2017, when MegaFon and Rostelecom first set up a working group to explore the future of 5G technology in the 3.4-3.6GHz and 26GHz frequency bands.
A year later, the pair formed a JV, Digital for Business LLC, saying that it would continue the companies’ 5G frequency research, ultimately aiming to build its own 5G that would then be offered to other Russian operators on a wholesale basis.
Russia’s Federal Antimonopoly Service (FAS) had approved the formation of the JV on the condition that it would allow non-discriminatory access to radio frequencies for all participants in the Russian mobile market, therefore maintaining healthy competition.
Digital for Business LLC was renamed as New Digital Solutions in 2019.
At the start of 2021, Vimplecom joined the JV, taking an equal stake in the business, saying that Russia was lagging behind the global 5G trend and that “even large operators cannot solve these problems alone”.
“The lack of frequencies suitable for creating 5G networks in Russia is one of the most significant constraints. The JV has a very large amount of work ahead of releasing radio frequency resources, taking into account the whole range of issues – regulatory, organisational, technical, economic,” explained Rostelecom president Mikhail Oseevsky at the time.
“The result of the work of the [JV] should be an objective full-fledged picture of the frequency resource available for the construction of fifth-generation networks in Russia. These data will allow for more informed decisions both for the state at all levels of regulation and for mobile operators to build an effective business based on new generation networks.”
This left MTS, Russia’s largest mobile operator, as the only significant mobile player without a piece of New Digital Solutions, something which it quickly indicated it would seek to rectify. Now, with all four operators on board, New Digital Solutions should have all the expertise it needs for better understanding the future of Russian 5G spectrum.
So far, however, despite roughly four years of research by the new JV, launching nationwide 5G services in Russia remains something of a technical quagmire, with much of the optimal spectrum already occupied by various other services.
In December 2019, Rostelecom, MegaFon, VimpelCom, and MTS agreed to clear the spectrum in the 700 MHz, 3.4–3.8 GHz, 4.4–4.99 GHz, and 24.25–29.5 GHz bands in preparation for reassignment for 5G services. However, many of these spectrum bands are contentious; for example, the Security Council of the Russian Federation says that part of the 3.4–3.8 GHz band is currently used for government services, while portions of the 4.4–4.99 GHz band are currently used by the Federal Protective Service (FSO), the Federal Air Transport Agency, the Ministry of Defense, and the Russian space agency, Roskosmos.
As a result, the JV’s focus has been largely on testing for electromagnetic compatibility, conducting research on frequencies suitability for delivering 5G services, and clearing existing spectrum bands.
It remains unclear whether New Digital Solutions still intends to rollout its own network infrastructure in future.
Also in the news:
After mixed messages recently about the cash-strapped state owned carrier, Zambia’s government has finally categorically denied media reports that it has decided to sell Zamtel.
In fact according to the ITWeb Africa news service, the country’s Vice-President Mutale Nalumango has gone much further, insisting that Zamtel will be recapitalised and not sold, the aim being eventually to enable it to compete favourably in the market.
Despite earlier reports of an unnamed equity partner, Science and Technology Minister Felix Mutati has insisted that so far no such no equity partner has been identified. However, Mutati was also quoted in June as saying that the government will not give the company the US$265 million recapitalisation it needs.
Since then he has suggested that a working committee would aim to investigate the viability of the company and recommend the way forward, saying: “At the end of the day, we want to save Zamtel and that is our only objective.”
That may be easier said than done. Zamtel’s working capital deficit is estimated at around US$59.8 million, and maintenance of current infrastructure, expansion and modernisation will add to the bill. Last week’s reports also mentioned outstanding debts of $175 million and a recapitalisation of at least US$265 million simply to stay afloat.
There’s also an issue with the sale of Zamtel in 2010 to Libya’s LapGreen Networks for US$252 million by Zambia’s previous administration. The present administration insisted that the transaction was illegal and soon afterwards took over Zamtel’s operations. In 2017 the Libyan Investment Authority, (LIA), the investment arm of the Libyan government, took the Zambian government to court for abruptly reversing the sale of Zamtel without compensation.
The debt owed to Libya could add to Zamtel’s outgoings: between US$380 million and $500 million, depending on which news outlet is quoted and also depending on how much the government has so far paid.
However, given the eye-watering debts it is carrying, it’s hard to see how Zamtel can be made into a going concern without a massive injection of cash, not to mention a complete overhaul.
Australia’s bandwidth ecosystem is one step closer to having a new route to the rest of the world. SUBCO has announced the completion of the final splice on the Oman Australia Cable, an express system that will offer faster speeds between the continent and the EMEA region. … [visit site to read more]
This week, the FCC has approved Elon Musk’s Starlink satellites to begin providing internet for moving vehicles throughout the US.
Starlink currently comprises around 2,700 LEO satellites, providing high-speed internet services to around 400,000 subscribers in 32 countries, with global coverage expected to be achieved later this year.
All of these subscribers access internet services via Starlink terminals, which are delivered to consumers and deployed at fixed locations nearby…
This week, the FCC has approved Elon Musk’s Starlink satellites to begin providing internet for moving vehicles throughout the US.
Starlink currently comprises around 2,700 LEO satellites, providing high-speed internet services to around 400,000 subscribers in 32 countries, with global coverage expected to be achieved later this year.
All of these subscribers access internet services via Starlink terminals, which are delivered to consumers and deployed at fixed locations nearby. These terminals then act as an intermediary, facilitating a connection between the satellites and the user’s connected devices.
Currently, these terminals must be fixed in place to provide services, though Starlink also offers customers the opportunity to move their terminal to an additional location and receive services there for an additional fee.
Accessing services whilst on the move, however, has thus far been prohibited by law; for example, earlier this year, Starlink began selling connectivity services to RVs (recreational vehicles), but could only legally deliver connectivity to them when they were stationary.
Now the FCC’s ruling will allow Starlink to begin offering internet directly to moving customers, from within aeroplanes, trains, ships, and automobiles.
“Authorizing a new class of terminals for SpaceX’s satellite system will expand the range of broadband capabilities to meet the growing user demands that now require connectivity while on the move, whether driving an RV across the country, moving a freighter from Europe to a U.S. port, or while on a domestic or international flight,” said the FCC’s statement.
SpaceX already has contracts in place with various airlines, including Hawaiian Airlines, JSX and Delta Airlines, to trial its latest connected technologies.
However, just because the FCC say that SpaceX can legally provide services to moving consumers does not mean that customers can tied their terminal to the roof of their car and expect to receive signal.
For one thing, as SpaceX and Tesla owner Elon Musk has pointed out, the existing “terminal is much too big” for use in most consumer vehicles, explaining that “this is for aircraft, ships, large trucks & RVs”.
Starlink’s website too seems to suggest that mobility remains something of a technical challenge.
“While our teams are actively working to make it possible to use Starlink on moving vehicles, Starlink is not yet configured to be safely used in this way,” reads Starlink’s FAQ page on its website, noting that using the terminal whilst moving will also void its warranty.
Starlink has yet to give a timeline for the rollout of these mobility services, but trials are currently ongoing.
This ruling comes amidst an ongoing regulatory battle between SpaceX and Dish Network, with the latter having sought to block Starlink from using the 12 GHz spectrum band for its services. With the new permissions from the FCC, Starlink will now have access to this contested spectrum (albeit sharing it with another satellite player, Kepler Communications), dealing a significant blow to Dish, which wants to use the spectrum to provide pay-TV services.
How will the wider availability of Starlink impact the telecoms dynamics of the US market? Find out from the experts at Connected America 2023
Also in the news:
Game set and match – connected strawberries
Snoop no more: Court rules against UK security services’ free access to telecoms data
BT: We need more time to excise Huawei from our network
